ITHACA, Mich., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2022 net income of $1,601,000, or $.40 per share compared to third quarter 2021 net income of $1,478,000, or $.37 per share. Return on Equity (ROE) was 15.72% for the third quarter of 2022 compared to 13.35% for the third quarter of 2021.

For the third quarter of 2022, net interest income increased $458,000, or 11.3% compared to the third quarter of 2021 primarily due to higher market interest rates and interest-earning assets. Total loans, excluding Paycheck Protection Program (PPP) loans, increased $21.3 million, or 5.4% when comparing September 30, 2022 to September 30, 2021. Non-interest income increased by $35,000, or 5.8% primarily due to higher debit card interchange fees. Operating expenses increased by $138,000, or 4.4% primarily due to higher wages and benefits expense.  

Total assets were $613.1 million at September 30, 2022 compared to $591.8 million at September 30, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At September 30, 2022, PPP loans outstanding were approximately $1.0 million compared to $54.4 million at September 30, 2021.

Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank. Visit www.commercial-bank.com to view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.

Selected Financial Data (unaudited):       
 Quarter Ended September 30, Nine Months Ended September 30, 
 2022 2021 2022 2021 
Return on Equity (ROE) 15.72%  13.35%  19.00%  14.28% 
Return on Assets (ROA) 1.02%  1.00%  1.32%  1.07% 
Net Interest Margin 3.02%  2.90%  3.45%  3.07% 
         
 September 30,     
 2022 2021     
Non-performing Assets Ratio 0.11%  0.74%     
Tier 1 Leverage Capital(1) 8.59%  8.83%     
Total Risk-based Capital(1) 14.74%  15.38%     
Book Value Per Share$9.39  $11.07      
Market Value Per Share$10.75  $10.58      
(1) Ratios are for Commercial Bank.        
         
Consolidated Statements of Income (unaudited):     
 Quarter Ended September 30, Nine Months Ended September 30, 
 2022 2021 2022 2021 
Interest Income$5,311,180  $4,657,097  $17,231,375  $14,320,497  
Interest Expense 786,229   589,799   1,903,293   1,838,321  
Net Interest Income 4,524,951   4,067,298   15,328,082   12,482,176  
Provision for loan losses -   (225,000)  -   (225,000) 
Non-interest income 641,174   605,799   1,717,031   1,791,714  
Operating Expenses 3,243,954   3,106,093   9,518,566   8,885,551  
Income before taxes 1,922,171   1,792,004   7,526,547   5,613,339  
Income tax expense 321,000   314,000   1,357,000   1,012,000  
Net Income$1,601,171  $1,478,004  $6,169,547  $4,601,339  
Net Income per share – diluted$0.40  $0.37  $1.56  $1.16  
Dividends declared$0.14  $0.14  $0.42  $0.42  
         
         
Consolidated Balance Sheets (unaudited):       
 September 30,     
 2022 2021     
Assets        
Cash and cash equivalents$53,518,943  $35,881,247      
Time deposits with other banks 9,458,000   20,854,000      
Securities 102,600,641   59,058,059      
Loans 416,905,083   449,036,166      
Allowance for loan losses (4,055,878)  (4,086,664)     
Loans, net 412,849,205   444,949,502      
Premises and equipment, net 8,853,644   8,311,175      
Other assets 25,825,343   22,785,377      
Total Assets$613,105,776  $591,839,360      
         
Liabilities        
Deposits$540,250,306  $497,771,045      
FHLB borrowings 19,000,000   34,400,000      
Trust preferred 13,403,000   13,403,000      
Other liabilities 3,210,208   2,371,146      
Total Liabilities 575,863,514   547,945,191      
         
Equity        
Total Equity 37,242,262   43,894,169      
Total Liabilities and Equity$613,105,776  $591,839,360      
         

Contact:
Kevin A. Twardy
CFO and COO
989-875-5528


Source: Commercial National Financial Corporation

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